deal reallyjust around the corner? softbank struggles as the japanese conglomerate pushes ahead. we look at the problems facing its vision fund. —— softbank. good morning, asia. hello, world. it's a wednesday. glad you could join us for another action packed mid week edition of asia business report. i'm rico hizon. we start the programme with the ongoing us— china trade conflict, because wall street shares have edged up to more record highs overnight, as investors look past some weak economic data to focus on president trump saying that the world's two biggest economies are close to an agreement on the first phase of a deal. the bbc‘s vivian nunis has more from new york. donald trump said on tuesday the united states was in the final throes of its push to reach a trade deal with china. the president said he had a very good relationship with china's president, xijinping, very good relationship with china's president, xi jinping, and very good relationship with china's president, xijinping, and the trade negotiations between washington and beijing are going very well. that see

softbank looks set impose new restrictions on startups after its gamble on wework turned sour. a word in your ear. how audio could be the next big thing for kids in the digital age. and on the markets: we start with japanese conglomerate softbank — which is well known around the world as a savvy investment giant. but its reputation for making winning bets on start ups has taken a knock with the near collapse of the the shared working company wework. softbank was forced to provide an embarassing bailout — and is expected to announce stricter measures on founders when it reveals its latest financial results shortly. vivienne nunis reports from new york on softbank‘s latest challenge. from hot property to a humiliating bailout. office sharing firm wework faced a cash crunch until softbank came to the rescue. now they will be looking at how much damage wework has caused to the bottom line and what it plans to do next. there are things that they might want to try to shrink the company a bit, grow a little more slowly, and focus more on the profitability. you have gone from a $47 billion

gamble. softbank reporting its first quarterly loss after a decade after bailing out wework. hoping to make progress on an eu— china trade deal. it's wednesday! good morning, as are, hello world. lad you could join us for this edition of asia business report. i'm regular he's on. let's kick off the programme with softbank because it is expected to report its first quarterly loss for a decade. it bailed out wework recently. the firm, which softbank now controls has plummeted from $50 billion in value tojust $8 has plummeted from $50 billion in value to just $8 billion in 2019. vivian nunes has more from new york about softbank latest challenge. from my property to a humiliating bailout, wework faced a cash crunch last month and still softbank came to the rescue. now investors will be looking at how much damage wework has caused to softbank‘s bottom line, and what it plans to do next. there are things they might want to try to shrink the company a little bit, growa try to shrink the company a little bit, grow a little more slowly and focus on the profitability, or path to profitabili

think softbank, who owns about 2 million or so of the shares, are selling any time soon. they are pretty bullish on rideshare and have a number of investments. but the founders of the company, we will see what they are doing. there are early venture investors and a host of other investors. it could take more than a couple days to digest through this. taylor: i want to take a look at a chart for the bloomberg audiences inside the terminal. it is the bearish sentiment around this stock. 1.4 for every call, showing more bearish sentiment into the -- into this. put that into perspective for us. we knew that day was going to come. do we expect more downside risk ahead? what are investors saying? >> investors are taking their cue from the results of uber who reported monday. at that time, it was mixed, noisy. and the upshot were a couple of things. one of them was that growth was the slowest at 29% of quarter beenquarter than has ever reported since the company began sharing that number. that's not a good thing. this is a company that has always sold investors on its growth potential as

those shares are probably not going to trade. i don't think softbank, who owns about 200 million or so of the shares, will trade any time soon. they are pretty bullish on rideshare and have a number of investments. but the founders of the company, we will see what they are doing. there's a host of other investors. it could take more than a couple days to digest through this. taylor: i want to take a look at a chart for the bloomberg audiences inside the terminal. it is the bearish sentiment around this stock. 1.4 put for every call, showing more bearish sentiment into the is. put that into perspective for us. we knew that day was going to come. do we expect more downside risk ahead? what are investors saying? >> investors are taking their cue from the results of uber who reported monday. at that time, it was mixed, noisy. the upshot were a couple of things. one of them was that growth was the slowest at 29% of quarter than it's ever been reported since the company began sharing that number. that's not a good thing. this is a company that has always sold investors on its growth potentia

details. plus, what is going on for its biggest investor, softbank, which is poised to post earnings? plus, peloton posts earnings but investors question the path to profitability. the ceo says it is part of the plan. he tells wall street to look for the long game. and, many state and local elections are taking place tuesday. in our electioneering series, we examine free speech versus falsehoods when it comes to political ads. to ban or allow? it is pitting facebook against twitter. first, uber tanked on tuesday after failing to prove itself to wall street. while the ride-hailing app is projecting profitability by 2021, it did just not seem to be enough. shares hitting a record intraday loss. the reported a rocky quarter on for more, i want to bring in an monday. mkm partners executive director. walk me through the share price action tuesday. what is your take? >> thank you for having me. i think that what uber did was, i had of its ipo lockups -- ahead of its three ipo lockups, they should have reported a good quarter but they reported a mixed quarter. they had higher take rates whi

come, softbank exception, is an rather than a symptom of broader problems. itselve into why investment model is under fire. this is bloomberg. ♪ shery: this is "bloomberg daybreak: asia." i'm shery ahn in new york. sean: after the wework fiasco, softbank's investment model is under fire. now the company's accounting is drawing scrutiny as softbank provides little transparency of the profit gains on its income statement. let's get over to pavel in tokyo for more. how does softbank's accounting model work? why is this drawing scrutiny? pavel: we took a deep dive in their evaluation practices with their vision fund. it was a two-part question. did vision fund play a role in inflating startups? how does softbank bank those gains? you have been concerns a fund of that size, a $100 billion investment fund, is bound to draw out valuations. we have seen anecdotes trickle out of founders speaking to $100 million and walking out with $1 billion. we have plenty of deals to look at. we look at notable investments like oil, doordash, and seen a pattern of steep valuation gains every time softbank

governments, health care providers, schools, and more. a softbank backed startup raised $80 million in new funding. the ai analytics customer company tries to predict user behavior to help clients and advertisers. it raised $162 million in funding to date from investors, including sequoia capital and softbank. one company will raise $1 million for start of investment funds. the venture will target startups from southeast asia to india to health and strength in its foothold in fast-growing mobile and internet markets. the fund will focus on payment and online finance. those are the top global tech stories we are watching. paul: let's turn our attention to asia's most valuable corporation, alibaba. the chinese e-commerce giant pulled off the biggest share sale in hong kong in nearly a decade, raising $11 billion. alibaba plans to use the funds to drive user engagements, improve operational efficiency and pay for continued innovation. joining us from hong kong with more details, we have bloomberg's own sophie kamaruddin. you were on the hong kong exchange on tuesday. we saw alibaba sha

in for —— affects investor sentiment. softbank has confirmed it plans to merge its internet unit with messaging app operator line creating the country's biggest internet giant. it expects the deal to be completed next year. i'm joined now to talk about this. tell us exactly just how big a deal is this that this will eventually form japan's largest internet company. this will bea largest internet company. this will be a very big headache and threat to the players in the market because while you talk about the biggest messaging service, line, merging with yahoo. in the case of yahoo they had many diversified services but they were always number two or three and everything. but now that they have tied up with line it is a different story and, let's face it, the utilisation of line exceeds 80% injapan. the utilisation of line exceeds 80% in japan. when the utilisation of line exceeds 80% injapan. when i told them that i did not have line, they look as if i was a martian. so it is obvious that this will be a big threat with many opportunities ahead for these players. and line is so pr

actually in the rough sea. >> softbank's vision fund has vested $88 billion in companies. the value of listed investments including uber and slack fell. but soft bank will go ahead with the launch of a second vision fund saying his valuation of wework was not right but he still believes it is a solid business. he's standing by it. >> he has to >> even with these results >> we'll see you in a bit. >> let's get a check on some of the morning's top stories. xerox considering a buy of hp the company has an informal funding commitment from a bank hp's market company is four times bigger than zerox and sales are far less than hp's nearly $60 billion and walgreens exploring a plan to go private. they have a market value of $54 million. one of the few dow stocks we noted lower this year. after talking about it more than a year, the fcc has approved t-mobile and sprint's merger the tie up still faces antitrust challenges another fed meeting a month away, no more rate cuts expected to be this year. what will be the big theme driver going forward good morning, erin what is going to be the driv

, it's difficult to think of another word. of the investment, softbank has made in we work and what it really says, about the founder and whether or not anything has really been learnt from the fall of this company. anything has really been learnt from the fall of this companylj anything has really been learnt from the fall of this company. i think the fall of this company. i think the founder of the softbank vision fund is leading a bit of humble pie this week, he said are a mess and i think it has dented confidence in the softbank vision fund. you got the softbank vision fund. you got the tobacco with we work, they've invested in uber which haven't had great ipos this year. and it's showing potentially their strategy, they are ip owing quickly, it's a significant fund, they are about to close another $100 billion fund but i think it's raised some clouds on the horizon for them, is this disruptive strategy and investment versus venture capital community, is it really working well and so far, the signs are mixed. and also the argument of profit versus growth, there has been a mistake m

halted shipments of oil, grain, and potash across canada is not over. softbank is giving some hard looks at his bookkeeping after wework's implosion. what it says about startup valuations and the future of south take itself. shery: we are seeing u.s. stocks near session highs. they extended their gains after the president said he has been talking to xi jinping. we have seen the major indices reaching record highs earlier this week as well. we continue to see those levels after china said the trade negotiators reached consensus on certain issues. we stay real estate and consumer discretionary leading the gains on the s&p 500. drugmakers are losing ground. hitting session lows. this after a report that federal prosecutors part of a criminal investigation into whether pharmaceutical companies intentionally let opioids like communities. all of them: the most since august. --falling the most since august. amanda: one read on the economy that could be a good sign ahead of the shopping season, new home sales running at the fastest pace in about 12 years. data from the commerce department

francine: germany's finance minister a path towards a european banking union. softbank's bet on a silicon valley startup takes its toll as the group reports its first quarterly loss in 14 years. and trump loyalists say rudy giuliani's role between president trump and ukraine became insidious. the latest on the impeachment proceedings. ♪ welcome to "bloomberg surveillance." good afternoon or good evening. these are your markets. a bit of a move sideways for the europe stoxx 600. mix the data across the world and mixed corporate earnings. if you look at the banking sector, it is one of the biggest gainers. we have a german manufacturing orders and euro area services pmi for the month of october. better than expected. anything above 50 means expansion and we were expecting 51.8. so look out for any movement on euro-dollar and the u.s. 10 year yield. coming up, we speak to the president of south africa. come -- alk about s escom at a possible ratings downgrade. but first, let's get to bloomberg first word news. >> we begin with the impeachment inquiry for president trump. the action

, saying the u.s. must drop tariffs. a steep decline in equity trading. and softbank reports. with a massivee write-down. we review those numbers. ♪ nejra: welcome to daybreak europe. let's get this -- to the softbank numbers. second-quarter operating loss for softbank comes in at ¥704.37 billion. a ¥497.7also seeing billion one-time loss in non-consolidated earnings. his recognition of the loss on the valuation of shares as well. the loss on the fair value of we work comes in at ¥497.7 billion. one-time loss on the fair value of we work. that's the details as we look at softbank. have a look at the tliv blog to get more details. of ¥537.9ized loss billion in the second quarter. that's the number they are putting on it. that's the headline coming through. fundecond quarter vision loss comes in at ¥970.27 billion. a little bit of a painful number here coming through, the second-quarter loss is wider than estimates. that second-quarter operating loss was 700 437 billion yen. it still sees a full-year dividend of ¥44. that is in line with estimates. comes ind-quarter loss at ¥7

, it could take softbank with it. softbank is big enough to trigger all kinds of issues for the market. >> you're scaring people saying it could take softbank with it significant losses, no doubt that's a few steps down the road the saudis are 45 billion in, they're getting 7% deferred return, and then other investors, it is not clearly softbank at risk in the way you -- >> if they blow through enough money, it signals a fundamental change in how we perceive new things going on in the economy >> the vision fund was a fundamental change in how we go about investing in things. >> turns out to be nonsense which is the way it looks to me at the moment, it has significant implications >> that's not taking softbank down >> wework controls a lot of real estate if they're forced to suddenly get out of it, leases are underwater, huge amount of space, if you're looking for systemic risk to scare people, you can bring that into the argument. >> if you don't want to look at it, don't look at softbank, don't look at wework. >> or you could say that the public markets have kind of created a f

interesting. haidi: thank you so much for joining us. later, we will be talking about softbank's results. uber weighed big on that. major bets on uber and wework. let's head to hong kong now. sophie taking a look at one of the early movers and the aussie session. jumped as muchs as 2.8% at the start of cash trade, now easing that gain, though. itsemains on track to meet one billion aussie cost-saving target i the end of fiscal 2020, report card his demonstrates the impact of compensation costs. full-year cash profit fell 11%, and the lender announced another dividend cut which takes total payment for the year down to 1.66 aussie dollars a share. they also announced plans to sell its wealthy unit this year with an ipo possibly in the cards. back to tradeet now. joining us now is ubs asset management head of fixed income. it is an interesting space we find ourselves in. there is uncertainty still over the trade situation. an interesting reaction when it comes to sovereign bond markets globally and increasing conversation or noise about maybe we will start to see qe in australia. how are we

psychological abuse. also in the programme. trouble at softbank, as the japanese giant fails to woo investors for its new fund. and — we'll be hearing from the young entrepreneur who's connecting upcoming social media influencers with the world's biggest brands. getting it right when it comes to where we work — we'll meet the company aiming to take the slog out of renting office space. today we want to know — what's on the menu for your christmas dinner? it looks like the traditional festive blow—out could be impacted due to extreme weather, with supplies of turkey and some veg affected. so will this change your plans? let us know — just use the hashtag #bbcworklife. let's get started. we begin with our top story. the british beauty council has exclusively told the bbc that they want an independent body to be set up to investigate claims of bullying and unfair dismissal. it's after the victoria derbyshire programme showed them evidence that there is bullying in all tiers of the beauty industry. beauty therapists and make—up artists have made claims ranging from gossiping

merger of two former american tech giants that have both seen better days. softbank's misstep, the ceo issues a mea culpa when it comes to his investment in we work. but he sticks to his vision and stays confident about future opportunities. shery: let's get you started with a quick check on the markets. the s&p 500 is flat at the moment. down for a second session. take a look at the midday fall that came as we got the report. perhaps china and the u.s. will not be able to sign a partial trade deal . we saw a lot of 10 point drops at that point, flat at the moment, coming after bloomberg that alaska will not be the location where they may meet. energy is one of the fixed decliners in the session. it is actually the biggest drop in the s&p 500 in today's session, as oil is also down from the six week after the report that the top producers in opec plus may not be pushing for deeper cuts when they meet next month. take a look at one of the most traded stocks today. huber, sinking to a record low after five sessions of losses. we have seen that post ipo selling restrictions have been

with us. sean taylor from dws. he's head of emerging-market equities. still ahead, softbank pays the price for we work and the mess there. plus, we hear exclusively from goldman sachs ceo david sullivan and why he says profit matters. this is bloomberg. ♪ yvonne: you are watching bloomberg markets. china markets and the rest of the world looking a little bit more tame today. taking a look at some of these shares of stocks that are listing in the shanghai composite, we are seeing a pretty stellar first day. day if you ared one of these companies. rishaad: certainly. let's take a look at what is going on. ray dalio saying the world has gone mad and the system is broken. he's talking about money being essentially free to those who have credit worthiness and unavailable to those who do not. sean taylor from dws is still with us. it is essentially what has been driving the global economy. it is kind of like just constantly feeding the heroin addict and refusing to take the heroin away. >> it is, but i think we are getting to the end of that. we can use monetary policy. particularly

types of items, beauty, wellness, cbd, will be present on the internet. taylor: you're a softbank portfolio company. what has it been like working with softbank? john: softbank has been a tremendous partner. there on our board. i would say softbank has been fabulous. they assist me in everything i need and the team in what we need. taylor: after the we work debacle, we saw heightened scrutiny in corporate governance and profitability. how much more pressure has softbank put on you to increase profit and corporate governance since the wework debacle? john: zero. you have to always have a path to profitability. if you don't have that path laid out, it's going to be very difficult. they are supportive of our efforts as we go through that journey, in every regard. taylor: have you given specific timelines on that profitability? john: no, not at all. other than the fact that we have enough cash to get to profitability. so it's not a fundraising issue. we don't have that problem, which is kind of unique for someone like myself coming into a company. very often i have to go raise money a

revenue but not the case in the numbers today. reporter: now let's turn to softbank. the company hitting a speed bump for the first time in 14 years after investing in money-losing owning up toork, his role in the loss. >> my judgment in investments was not right, so i regret in many ways. isaine: joining us for more new enterprise associates early state investor with three decades of company billing expertise focusing on emerging technologies. hey pretty much put it like this. he said today's earnings are a mess. i should point out, that was softbank. the vision fund was like $1 billion more. >> we work alone was more than a $4 billion hit. the parent company and the vision fund. he did say it was a mess, but he seriously defended his vision your it he said they were moving forward. he said the strategy was the same for the most part. they are defending what they are doing here. ben, i want to bring you in here. what are the consequences downstream to earlier stage funds, smaller companies, and so if perhaps the mega funding we have seen will fade or if there is a slight strateg

chairman which comes from softbank updating the staff after they let go of 2400 people in the work force. the most interesting thing is wework is aiming to be positive by 2021 echoing what we heard from a lot of other unicorns and they intend on being cash flow positive by 2023 this is the company that lost $1.2 billion last quarter. >> thank you very much >> as wework top brass meet on their future, softbank aimed to slashed n eed neumann's golden package. great to have you with us. isn't that in the books? they can do that at this point >> it's unclear. legally, i think it would be almost impossible. part of this exit package was designed so adam neumann would give up his voting rights to softbank he's done that, i believe. if he's given up his voting rights, that's done at this point. look, it's terrible pr it was arguably a bad deal if they are trying to argue to perspective investors, we know what we're doing, what does it say when they are changing their own mind three weeks later, a month after they signed the deal >> they already had trouble going into the fund raising roun

looking at this quarter, the equity franchise remains solid and keeping market share. anna: softbank's miss. the firm posted first quarterly losses with staggering write-downs from huber and -- uber and wework. a top diplomat tells of a quid pro quo in ukraine as china sets its price for an interim trade deal. the u.s. must drop tariffs. less than half an hour until the start of european equities. all of those headlines, having an impact on the markets. let's look at what we've got. this is what futures tell us will be happening in europe. dax and cac, a little flat. ftse futures, looking more negative. futures, fairly unchanged at this point of the trading day, drifting after we saw decent gains at the beginning of the week. generally speaking, not moving that far on the u.s. futures, global futures and if we show you the gmm, fairly confused about the asian session. waiting for new lines around trade. the heard talk about the conditions the chinese want to impose on signing phase one of the trade deal in the u.s. will they require a rollback of the tariffs to get them over the politi

ties to softbank. this is bloomberg. ♪ caroline: wework is searching for a new ceo and t-mobile's leader is among many under consideration. he has a connection to the majority shareholder, softbank. he is currently pushing for a withr with sprint softbank. this is all very incestuous and, , they have seemingly other a few barbs at each . >> as you point out, there is contention between the current chairman and john legere, who have sparred often publicly on twitter. someone surfaced earlier a tweet from a few years ago where one called the other a con man. but as you pointed out, they both share deep connections to softbank, which as the ,ontrolling holder of wework seems to be open to the possibility of putting him up as ceo. 's success atere t-mobile, ripping up the rules. geteems like they want to boring, get rid of all the interesting things and just be a company that does a good job renting it out -- renting out space. what could john legere bring to bear with that strategy? >> the new tax that -- the new tack that wework is trying to take, much more rhetoric around, like, we

up on the central bank's fund, thailand expected to cut rates. earnings of note include softbank, mitsubishi motors, the hong kong exchange and wynn macau. quick check of the u.s. dollar which is extending its advanced after the strong u.s. data we got overnight. that has seen pricing for a fed rate cut not christ in until 2021. checking in on the offshore yuan, steady. the yen is holding a three-day decline. jp morgan has raised the dollar-yen on increase japanese demand for overseas investment. a check on the kiwi dollar that has recovered after poor data extended. new zealand unemployment rate rose more than estimated to 4.2% in the fourth quarter from 3.9%. haidi: sophie kamaruddin in hong kong. the first word news now. ritika: a senior trump administration envoy testified the white house did press ukraine to investigate joe biden in exchange for an oveal office meeting for the country's new president. the u.s. ambassador to the eu contradicted president trump's assertion that there was no quid pro quo. sonland believes the investigation would have to happen before volodymyr

pickings. also in the programme. softbank, the japanese investment powerhouse, posts a huge loss as its latest gamble on stricken wework and other tech bets turn sour. and do you fancy a cuppa? i will never say no. but think before chuck out the bag, there could be plastic in the bag. and seaweed has long been a staple food in asia, but now it is making its way to our shores and our plates. today we want to hear from you, the and our plates. today we want to hearfrom you, the booming market in audio books and podcasts for kids, can youngsters be weaned off screens? let us now with the hash bag bbc worklife. hello and welcome to worklife. we start with how much time your kids are spending glued to their screens. we're all being encouraged to limit their exposure to video games and social media and that could benefit one sector in particular — kids audio. across all ages, audiobooks are the fastest growing publishing format with 13% growth in 2018. now big us public service broadcasters like npr and wnyc are joining podcast networks such as gimlet and panoply in the battle to provide au

on softbank space or are they looking at it like a lesson learned? sonali: lesson learned for sure. admitted some mistakes but he was defiant. he defended his strategy. losssaid, a $6.5 billion is what people expected. maybe a little bit more. not toward the high end of expectations. shares are not going crazy because it is what people expected. guy: he was not very contrite. he did not back down. will that play well with investors? sonali: that is what i was wondering. what is the bottom? shares are not moving a lot, but that does not mean there is not trouble ahead for softbank. earnings are little bit muddier, and then on top of that uber is still under pressure through today. that is not reflected in the earnings report you saw today. wework is in the middle of a tough turnaround story and a number of fund bets that are not doing well. we do not know how much money they are bringing in for the second vision fund, or where those investors stand. with all of that said, what is the bottom? vonnie: it seems to me he does not have to be as conciliatory to investors as others have to

softbank. this comes at the same time as legere is pushing for a merger with sprint, whose owner is also softbank. walk us through the news of today. ellen: as we reported this morning, it seems like he is one of several names up for consideration for a ceo search fo for wework. this is something that has kind of been percolating. again, this may be a sign of softbank pulling the strings. we talked about -- they have a lot of control over wework. they have strong ties over john legere. in an amusing twist, ties with the executive chairman who is a former sprint leader and someone who in the past has sparred publicly at times with john legere over telecom industry beefs they had. one of them even called the other a conman on twitter. it seems like his name is in the ring. kurt: it has been six weeks since newman stepped down. what has been going on at wework on the executive front? ellen: it has been a long six weeks. in late september, there was the upheaval. adam neumann stepped down. we had these co-ceo's, they come onto take the reins. pretty quickly, softbank installs the execut

company said they were not initially going to start another surge, it seems like softbank and/or maybe the company as well are starting to ask around and see if there is someone to take over. i think they recognize it will be important for someone to step in with a lot of confidence, ability to set a new course for leadership. it has been so shaky internally since then. they had marcello step in as executive chairman. but notably not in a ceo role. i think the expectation would be that he would work alongside whoever ends up becoming ceo. i am sure this is a search that weighs heavily on the minds of the board, executive trying to find the right person who can lead them out of this tumultuous period. taylor: boosting employee morale can be so key to that strategy. thank you, bloomberg technology's ellen huet. when alphabet started looking into acquiring fitbit, it turned to a familiar name, lazar, the investment bank that goes back to the 1800s. -- it can count on the silicon valley giant as a surprising and steady source of business. joining to discuss is bloomberg's leanna bake

we had -- >> any sense of why softbank -- why softbank didn't come in at 40 billion >> that's a joke, right? >> is it i was work on uber, grubhub -- uber, you know, door dash versus -- >> yes >> i just find themselves in some sort of existential crisis and that's softbank, to be so stupid about so many things. not long-term. long-term, what are we long-term? >> it is 300 years, masa has a 300 year view. >> ted williams and cryogenics. >> people say it was a once in a lifetime -- it was, but he decided not to sell it when it was 10 bag or 15 bag or 20 bag, but wait. >> he got that one right maybe that's all you need. >> he did decent things when it came to -- yahoo! japan. >> he's a genius, all right. >> it is a mixed picture certainly lately softbank and the vision fund have inflated values far beyond. they have given more to companies that should not have them, all they do is spend money and may not end up being a profitable business to begin with. >> john ledger from wework it all different. >> reuters now says he's not a leading candidate. >> i don't know. he's one of a numbe

with the curse of the unicorn uber under pressure again. >> we have that softbank disaster after the fund's wework debacle. masa son saying his investment judgment was poor. >> hp rallying ahead of the bell, the target of a potential takeover effort by xerox we'll start with uber. shares facing more pressure after hitting an all time low yesterday. company reports another billion dollars in losses as you know and the post ipo lockup period is expiring, freeing up a billion shares for trade the take among some is the shares are so underwater, maybe the expire doesn't mean as much. >> i don't buy that reasoning. i think that what matters on the conference call, they committed to losing money. now they committed to making money in 2021. the patience level is lost here. i think this is one of those stocks where you say why do i need this, i can buy -- i can name ten other stocks and the kinds of stocks that are going up are value stocks, this is the ultimate of what you're not supposed to buy now. you use the term that is not technical, it is just not working. i find that i can't com

softbank reporting these terrible earnings. but so many of the people who were at uber running that business, the employees joined it under this premise of world domination and growth. how is this shift in what the whole story is about going to affect those employees and the way uber operates? >> i think it's going to affect not just uber, but it's going to affect more broadly across -- >> that's for mike isaac >> sorry about that. i couldn't hear the opening. >> yeah, my bad. i couldn't hear it either. i think paul is totally right. they're definitely different classes of folks that got in anybody who got inspe super eary is riding high no matter what the stock price is right now but i do think it's an open question as to what the future of uber looks like and are they going start paring back on the sectors they were going into as soon as dara joined, it's been two years now they started selling off different parts of the business this idea they're going to take on or eat amazon is starting to fade for long-time employees there. and i think there's really like a split internally on

on our website as well, do take a look. let's talk about softbank now, because this week it's reportedly pushing ahead with its rescue plan for the office—sharing firm wework, in a deal worth $9.5 billion. wework is one of 70 companies which currently receive investments from softbank‘s vision fund. but its failit share sale has already provit damaging but its failed share sale has already proved damaging to the japanese conglomerate‘s reputation and its bottomline. let's go to our asia business hub, where rico hizon has been following the story. what more can you tell us? it is the wework and uber investments that have really drained the deep pockets of softbank‘s vision fund, which has raised nearly 100 alien us dollars. —— billion. its second fund is coming very soon but apparently softbank is struggling to raise money for it. apart from the japanese conglomerate, the fund also has two major backers. saudi arabia, which invested $45 billion in abu dhabi, but now saudi arabia says it might only invest whatever profit it gets from the first vision fund, while abu

wasn't him. >> it was you a minute and a half ago we digress >> talking about another big story. softbank reported the first quarterly loss the vision fund suffered a loss of $8.8 billion. the vision fund has vested $70.7 billion in 88 companies and as of the end of september, those investments are worth $77.6 billion. the value decreased by $3.4 billion in the second quarter. at a news conference, masa son didn't mince words >> we have the earnings result announcement is not good at all. it is a big negative the three month quarter result the size of the negative probably the first time since the foundation of the business i want you to take a look at this picture we are actually in the rough sea. >> that's was masa son taking it on the head. jp morgan ceo addressed the issue yesterday. here is what he said >> i don't believe they have a $ $47 billion valuation. they are all different some of these companies have unbelievable technology, some are venture. some are trying to grow so fast. there are less ones to be learned about these. how you go public. those less ones should be learned b

ceo search is said to include t-mobile ceo john legere . ties toere has softbank. this comes at the same time as legere is pushing for a merger with sprint, also with softbank. as we reported this morning, it seems like he is one of several names up for consideration for a ceo search wework. is something that has kind of been percolating. again, this may be a sign of softbank pulling the strings. they have strong ties over john legere. twist, ties with the executive chairman who is a former sprint leader and someone who in the past has sparred publicly at times with john legere over telecom industry beefs they had. theof them even called other a conman on twitter. kurt: what has been going on at wework on the executive front? ellen: it has been a long six weeks. ,september, co-ceo's they come onto take the reins. pretty quickly, softbank chairman.he executive out alleen sending staff emails, saying, if you have any concerns or questions, feel free to email me. he seems very forward. at the same time, it seems the company is going forward with a multipronged search for ceo. one of th

of this for the softbank story? alex: we've got softbank's earnings coming up. we know there's expect it to be some write-downs through their numbers, given they have huge exposure to. they have less exposure, but huge exposure to companies like slack and others who have gone public. i don't know yet whether we will see the impact of the wework investments. it is theet that parent company that bailed out wework, not necessarily softbank's vision fund, so lots of moving parts. it has been reported that some sort of write down will be coming out as a consequence of uber disappointing in the past six months. guy: thank you very much. we look forward to seeing what they have to say. alex webb joining us on uber. we will see from softbank a little later on. a little bit of breaking news, former u.k. chancellor philip hammond has announced on twitter he is going to quit parliament. he says he is saddened to be forced out by boris johnson. this is significant because this is another remain tory candidate that is going to be leaving parliament, and in some ways, this is important for boris jo

stories in tech. a terrible week for softbank. their investment down to wework and uber triggered a $6.5 billion loss, but ceo masayoshi son is sounding hopeful about the office space provider. >> time will solve the wework problem. we will make money once the wework's building portfolio is allowed to ripen. how? stop the new building development and profitability will improve and we will expect a cost to go down by half or more. it is that simple. brad: part of a plan to profitability for wework is to sell off the non-core businesses. the plan was confirmed friday. joining us from new york, author techon't be evil: how big betrayed the founding principles in all of us." thank you for joining us. guest: thank you for having me. brad: masayoshi son sounding embarrassed, saying he made mistakes with wework. but then you see a cfo doing interviews, saying nothing will change with the vision fund. what is happening at softbank and what kind of lessons have they learned? rana: it feels like 1999 to me. it feels very frosty. i think the fact a fund as big and bloated as softbank exists in its

direct. names pop up those a lot. sonali: softbank also. do you follow softbank? romaine: she knows everything about softbank. in all seriousness, just jumping on those hot ipo trains, we did see a little bit of that at the little bitq3 was a quieter for ipo's. do we still see that appetite? sonali: we do. this is not a public company, door -dash raised money. you do see a risk appetite, even for softbank, caroline. i would not say people are legally off these -- completely off these ipo's, especially for health care. viking did sell their stake in united health. it is super interesting seeing them leave some big positions when that is a politically charged name. caroline: thank you for giving us your early take. the latestck on headlines for you now. cowboy owner was in talks to buy shell, valued at more than a billion dollars. if oilt not be viable and gas prices stay low. lasts for benefits rose month. it could reflect seasonal adjustment issues. jobless claims hit a 49 year low. that is your is this update. --your business update. joe: chaos in hong kong as anxiety builds over w

and give us a better understanding of what uber is doing, but what is the translation for softbank as well? romaine: you are seeing two things, folks who want to exit their positions who have been in their positions for quite some time, but when you look at the price action this morning, you are seeing a lot of demand for the shares. this is a huge lockup, the biggest we have had, and when you talk about hundreds of millions of shares coming into the market, it will depress the prices. percent, 4%hat, two at the moment and buyers are willing to come in and scoop up some of these shares. i think there is a long-term play when it comes to ridesharing, and people look at the core business and see a future. whether this says something broader about softbank and its investments, you have some people who are willing to take a flyer on these shares. they are looking at a stock down from its ipo40% price, and they see a bargain, relatively speaking. vonnie: does it mean that standards are getting higher for when these mega-growth companies see profit? absolutely. you saw that in regard to

lot. now we go to softbank strategy aggressively backing technology pioneers is backfiring. the operating loss about 14 years, joining us is a bloomberg opinion columnist. walk us through how bad it was. >> the underperformance and losses stemming from the $100 billion venture capital arm, they drove the whole company into a loss. and all of those were attributable to declining writing down evaluations from the most prominent portfolio wework,es, not at least these companies were supposed to be delivering good returns, they were supposed to ipo over the course of the most recent quarter. that hasn't been the case. questions about strategy and he did issue something of a mea culpa. he said everything is in the red, he made a judgment, the problem of his own judgment led to the consistent backing even though it was a company that didn't have any immediate route to profit. he then announced a pivot the company will be focusing far work --ently, that we wework will be working on cash flow. seensomething we've now from the companies themselves. uber when it reported yesterday was pus

that it gets recertified. >>> softbank after a string of bad losses. >> it's some of the vision fund's highest profile investments have led to a $6.5 billion loss at softbank group shares have fallen nearly 20% the last six months. it may come as no surprise that softbank's biggest investors are criticizing the company, capital group, southeastern asset management are putting pressure on softbank for those bad investments and also for its plan to help raise cash for vision fund 2, which involves lending billions of dollars to softbank executives. those investors not commenting or responding to request for comment. softbank says vision fund 2 is, quote, progressing as expected back to you. >> deirdre, thank you for that do you believe this is the end of softbank's vision fund future funds? >> you've got to be kidding me. >> a boisterous response to this. >> that's over an era has officially ended. now it's to salvage operation. you never see anything like that again. >> there you go. >> until five years from now. >> public investors trying to go up against softbank's eternal time

softbank, t-mobile and weak parent declined -- wework parent declined to comment. john legere is being considered and this is no surprise. there has been work on a sprint-t-mobile merger. john legere would be an obvious choice for someone like marcello. he is liked by a lot of people. he might be a solution for softbank. he is just one of several people under consideration according to the sources. stocks of sprint and t-mobile down as much as 4% for t-mobile, both have recovered but still 2.6% down for mobile, and sprint view anypull into tieups. says week total demand growth will weigh on markets. he spoke with us from abu dhabi. we are producing in abu dhabi the lowest in terms of oil is low. low-costtal is the oil. come even if good the mood in the market is not good. sweet.60 you are or 65, whereat 64 can we move to on the upside if there is a trade deal? patrick: i don't know. i always make a mistake when i try to guess paired for total, my break even after dividend is at $50. i am ready to see the price down compared to my competitors. the oil price, look to the 12 months passed